The Bank of England’s Monetary Policy Committee has again voted to keep the base rate at 0.5 per cent with quantitative easing remaining at £375bn.
Base rate has remained at current levels since March 2009 when the MPC first voted to cut rates to record-lows in a bid to help stimulate the economy. On the same day the MPC launched its programme of quantitative easing.
The quantitative easing programme was increased by £50bn to £375bn in July 2012 though the committee has voted in factions since then with some members, including former governor Mervyn King, voting in favour of a further increase to the programme.
However, at last month’s MPC meeting – new governor Mark Carney’s first – the MPC voted unanimously to hold quantitative easing at £375bn and base rate at 0.5 per cent.